Fossil fuel subsidies in Australia 2024

Federal and state government assistance to major producers and users of fossil fuels in 2023-24

Australia’s subsidies to fossil fuel producers and major users from all governments totalled $14.5 billion in 2023–24, increase of 31% on the $11.1 billion recorded in 2022–23.

$14.5 billion equates to $27,581 for every minute of every day, or $540 for every person in Australia.

Beyond the 2023–24 budget year, total budgeted fossil fuel subsidies over the longer term have reached $65 billion.

This longer term total is 16 times the balance of Australia’s Disaster Ready Fund, and 6.5 times greater than the Housing Australia Future Fund (HAFF). The Federal Government’s share of this total is $54 billion, or 5.4 times the HAFF.

Australia is not taking serious action on climate change. Instead, the majority of its governments continue to subsidise the fossil fuel industry and greenwash their poor climate policies. Cutting fossil fuel subsidies would not only help achieve genuine reductions in emissions, but would save money that could be spent on public services.

But the coming months bring new opportunities to change course. Budgets will soon be passed for the 2024-25 financial year, and elections will be held in the ACT, Northern Territory and Queensland. A federal election is due in the next 18 months. The costs of Australia’s fossil fuel subsidies, both financial and environmental, and the opportunities that their phase out could present, should be front and centre of Australian policy debate.

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